Abstract

This study aims to analyze the effect on stock prices. Company profit information which includes gross profit margin, operating profit margin, and net profit margin are variables that are thought to affect the 2012-2014 stock prices. The unit of analysis used is the Consumer Good Industry Company. Testing of this research was carried out using the classic assumption test, which consisted of 3 basic assumptions, namely normality, multicollinearity, and heteroscedasticity. After that, a multiple linear regression test is performed to determine the regression equation that shows the relationship of the dependent variable that is determined by two or more independent variables. The F-test is carried out to find out whether the three independent variables together have a significant effect on the dependent variable. And the last t-test is used to see the significance of the influence of individual independent variables on the dependent variable by assuming other variables are constant. The results showed simultaneously a positive and significant influence from net profit margin, operating profit margin, and gross profit margin on stock prices in Good Consumer Industry Company listed on the Indonesia Stock Exchange, while partially net profit margin and gross profit margin were not there is a positive and insignificant influence on stock prices on Good Consumer Industry Company listed on the Indonesia Stock Exchange, while operating profit margin, partially there is a positive and significant effect on stock prices on Good Consumer Industry Company listed on the Indonesia Stock Exchange on 2012-2014.

Highlights

  • The Consumer Good Industry Company is one of the companies listed on the Indonesia Stock Exchange, besides that the Consumer Good Industry Company sells more shares or securities in circulation than any other company listed on the Indonesian Stock Exchange, the Consumer Good Industry Company continues to strive increase profits with careful strategy and planning so that they can compete with other publicly traded companies, especially those listed on the Indonesian Stock Exchange

  • Ratnasari and Handayani (2013) states that the Gross Profit Margin (GPM) is the ratio or balance between the gross profit of the company and the level of sales achieved in the same period

  • Research Object and Location This study takes the location of research on Good Consumer Industry Companies listed on the Indonesia Stock Exchange, which is the object and location of research is the influence of Gross Profit Margin, Operating Profit Margin, and Net Profit Margin on the price of Consumer Good Industry Company shares listed on the Indonesia Stock Exchange

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Summary

Introduction

The Consumer Good Industry Company is one of the companies listed on the Indonesia Stock Exchange, besides that the Consumer Good Industry Company sells more shares or securities in circulation than any other company listed on the Indonesian Stock Exchange, the Consumer Good Industry Company continues to strive increase profits with careful strategy and planning so that they can compete with other publicly traded companies, especially those listed on the Indonesian Stock Exchange. The increasing number of companies that go public will benefit potential investors because potential investors will have many alternatives in investment decisions in companies that are performing well so that investors in investing do accumulate on one investment only. In line with the development of the economy, many companies are expanding their businesses. For this purpose, companies need relatively large funds. Meeting the needs of the funds can be obtained by Mahruzal et al / International Journal of Business, Economics and Social Development, Vol 1, No 3, pp. 153-163, 2020 making loans in the form of debt or issuing shares in the capital market. According to Pinuji (2009), by issuing shares in the capital market means that companies are owned by old owners (founders) and owned by the public

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